Leases

6 Months Ended

Dec. 31, 2023

9. Leases

The Company has operating leases primarily for its office facilities. The leases expire at various dates through fiscal year 2029, some of which include options to renew, with renewal terms of up to 7 years. The Company does not include any renewal options in the lease terms for calculating lease liability, as the renewal options allow the Company to maintain operational flexibility and the Company is not reasonably certain that it will exercise these renewal options at the time of the lease commencement.

The components of lease expense for the three and six months ended December 31, 2023 and 2022 were as follows (in thousands):


	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2023		2022		2023		2022
Operating lease expense	$	690	$	1,229	$	2,139	$	2,454
Short-term lease expense		179		160		356		329
Variable lease expense (1)		210		148		420		291
Total lease expense	$	1,079	$	1,537	$	2,915	$	3,074

(1)

Variable lease expense for the three and six months ended December 31, 2023 and 2022 primarily included common area maintenance charges.

Supplemental information related to operating leases was as follows (in thousands, except lease term and discount rate):


	Six Months Ended
	December 31,
	2023			2022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows used for operating leases	$	3,095		$	2,945

Lease liabilities arising from obtaining right-of-use assets
Operating leases	$	7,044		$	—

Weighted average remaining lease term - operating leases	4.5 years			1.6 years
Weighted average discount rate - operating leases		6.2	%		5.1	%

The implicit rate within each lease is not readily determinable and therefore the Company uses its incremental borrowing rate at the lease commencement date to determine the present value of the lease payments. The determination of the incremental borrowing rate requires judgment. The Company determined its incremental borrowing rate for each lease using indicative bank borrowing rates, adjusted for various factors including level of collateralization, term and currency to align with the terms of a lease.

Maturities of operating lease liabilities as of December 31, 2023 were as follows (in thousands):


Fiscal Year Ending June 30,	Amount
2024 (remaining six months)	$	2,020
2025		3,356
2026		2,708
2027		2,572
2028		2,714
Thereafter		1,666
Total minimum lease payments		15,036
Less imputed interest		(2,694	)
Present value of net minimum lease payments	$	12,342
Operating lease liabilities:
Current	$	3,286
Noncurrent		9,056
Total	$	12,342